Quarterly report pursuant to Section 13 or 15(d)

Stock Compensation

v3.4.0.3
Stock Compensation
 3 Months Ended
Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Compensation
Stock Compensation
        
Pursuant to the Starz 2011 Incentive Plan, the compensation committee of the board of directors may grant eligible employees stock options, stock appreciation rights, restricted shares and restricted stock units.

Stock compensation expense, by expense category, consisted of the following (in millions):
 
Three Months Ended March 31,
 
2016
 
2015
Programming
$
0.7

 
$
0.6

Operating
0.1

 
0.1

Selling, general and administrative
7.5

 
7.6

 
$
8.3

 
$
8.3



As of March 31, 2016, the total unrecognized compensation cost related to unvested stock options, restricted shares and restricted stock units was approximately $51.5 million. Such amount will be recognized in Starz’s condensed consolidated statements of operations over a weighted average period of approximately 2.46 years.

The number and weighted average exercise price (“WAEP”) of stock options to purchase Starz common stock were as follows:
 
Options
 
WAEP
Outstanding at December 31, 2015
13,187,542

 
$
18.97

Granted
—

 
$
—

Exercised
(283,749
)
 
$
14.10

Forfeited
(193,703
)
 
$
27.74

Expired/canceled
—

 
$
—

Outstanding at March 31, 2016
12,710,090

 
$
18.94

 
 
 
 
Exercisable at March 31, 2016
8,449,119

 
$
15.95



At March 31, 2016, the weighted-average remaining contractual term of outstanding options was 4.84 years and exercisable options was 4.24 years. At March 31, 2016, the aggregate intrinsic value of outstanding options and exercisable options was $107.6 million and $90.3 million, respectively. The aggregate intrinsic value of options exercised was $4.7 million and $21.7 million for the three months ended March 31, 2016 and 2015, respectively.

The number and weighted average grant-date fair value of restricted share grants were as follows:
 
Restricted Shares
 
Weighted
Average Grant-Date Fair Value
Outstanding at December 31, 2015
769,947

 
$
29.22

Granted
90,064

 
$
26.09

Vested
(48,092
)
 
$
18.43

Forfeited
(27,247
)
 
$
27.11

Outstanding at March 31, 2016
784,672

 
$
29.60


The grant-date fair value was based on the market value of the shares on the date of grant. The aggregate fair value of all restricted shares that vested during the three months ended March 31, 2016 and 2015 was $1.4 million and $2.4 million, respectively.

As of March 31, 2016, the number of performance based restricted stock units representing the threshold, target and maximum payout levels were 50,061 units, 100,122 units and 200,244 units, respectively (which are not reflected in the table above). During the three months ended March 31, 2016, 6,948 units, at the target payout level, were forfeited.

At March 31, 2016, 1.9 million outstanding stock options were held by employees of Starz’s related party Liberty Media.